A couple months ago, we were writing in our recommendations that any anticipation is welcome. The timing is essential for the creation of your regulatory documents. With the ESEF standard, new manipulations must be considered in your planning, such as block tagging (iXBRL). Don’t hesitate to ask your service provider for a demo to anticipate these new technical parts. At Pomelo-Paradigm, we are always at your disposal for any ESEF explanation. We also propose dedicated trainings (for the taxonomy part, for example) and have an ecosystem of expert partners.
During twenty years, companies have published their reports in PDF. This format is required if the document has to be printed. In order to save time, some companies turn their PDF into an XHTML. However, this type of conversion is not fully ESEF compliant: there is a risk of information loss (like tags), and it might reduce the readability and the quality of the document. Therefore, it is better to create directly a native XHTML file. In Pomdoc Pro, a simple click on “export to web format” will provide the correct XHTML format.
In a report of the French Market Authority, it has been noticed that companies have only tagged taxonomies. And yet, thanks to the XHTML format, a multitude of elements can be tagged, including headings and sections. The more tags your report contains, the more attractive it will be. Put yourself in the shoes of an investor and ask yourself the right questions: what information would be the most interesting? What criteria are used to compare the many reports? Spoiler alert: with the particularly turbulent geopolitical and energy context in 2022, many of them will focus on the ESG part this year… Be careful in 2023 on this tagging part, since the notes and annexes will also have to be tagged from now on.
The arrival of a new standard, such as ESEF, is a true challenge for companies. To become compliant, they must adapt and step out of their comfort zone. While this milestone might be tricky, it nevertheless represents a perfect opportunity to innovate and position yourself as a pioneer. Moreover, innovative companies are highlighted compared to their competitors. Therefore, the ESEF format has many advantages for your company. Focus on the benefits of this challenge! Do not hesitate to implement new features: tools, process, team…Even if those changes require adaption, keep in mind that it allows your service to evolve and reinvent itself.
What’s better than a European service provider to meet European regulations? At Pomelo-Paradigm, we best anticipate future standards through our evolutive SaaS solution. Thanks to 10 years of experience, we have implemented the perfect technical tools in Pomdoc Pro and are XBRL certified in order to help our customers face ESEF challenges.